Aristocrat Leisure Limited

Aristocrat delivered NPATA of close to $800 million in the half, up 8% reported and 16% in constant currency. EPSA increased close to 11% reported and 19% in constant currency. Group revenues rose 6% and segment profits rose 7% in constant currency; EBITDA margin expanded by 220 basis points. Gaming revenue grew 12% and profit 10% in constant currency; Product Madness social casino revenue rose 5% in a market that declined 11%; Interactive total revenue in iLottery JV rose 7%, iLottery revenue grew 14%, and content revenue grew 25%. The effective tax rate was 27%, D&D spend was $407 million and up 7% constant currency, and the interim dividend was $0.50 per share with a 38.8% payout ratio. For the full year to 30 September 2026, management continues to expect NPATA growth on a constant-currency basis and now expects gaming operations net unit growth at the upper end of the 4,000 to 5,000 range. Management also reaffirmed its FY29 USD 1 billion Interactive revenue target.

Trevor Croker struck an upbeat but measured tone, describing the first half as another period of clear progress and saying Aristocrat gained market share across all key segments. He highlighted strong product momentum in gaming, Product Madness, and Interactive, while stressing that the company is strengthening its foundations through AI, operating discipline, and a “One Aristocrat” model. He also acknowledged that Interactive is behind where management wanted to be, but said recent leadership changes, new content launches, and broader market access give him confidence in the path toward the USD 1 billion target.

Sally Denby emphasized strong financial performance and cash generation, with NPATA close to $800 million, revenues up 6%, and EPSA up 19% in constant currency. She called out $407 million of D&D spend, a 7% increase in line with guidance, and noted corporate costs benefited from a $45 million legal cost recovery tied to the Light & Wonder settlement. She also highlighted strong operating cash flow, almost $680 million of buybacks during the half, the increase of the buyback authorization to $2.5 billion, and the refinancing of debt facilities, including a USD 1 billion revolver that improves flexibility. She said the company remains committed to capital returns while still investing in D&D, CapEx, user acquisition, and targeted M&A.

Analysts focused on full-year weighting, gaming ops mix, fee-per-day versus install growth, the pace of the Interactive turnaround, and the rationale for exiting White Label. Management said second-half momentum is supported by the gaming pipeline, the July Lightning Link launch in Interactive, and the Massachusetts and Michigan lottery transitions. On Interactive, Trevor openly said progress has been behind plan due to slower market openings, UK regulatory changes, and execution timing, but argued the team, content pipeline, and market access improvements now give them line of sight to the USD 1 billion goal. Sally said the White Label and Big Fish exits had negligible bottom-line impact and that legal fees should come down now that litigation is largely behind them.